New home sales top expectations in December
|New Home Sales Rise Solidly at Year End
Sales of new single-family homes rose 11.9% in December to an 811,000-unit pace, which is the highest since March 2021. The rise topped consensus expectations but was tempered somewhat by downward revisions to sales in both October and November. Sales were likely bolstered by an increase in home completions last fall, particularly for more modestly priced homes. The bulk of the increase in sales, however, continues to come from sales of homes where construction has not yet started or from homes currently under construction.
The median price of a new home was $377,700, which was up just 3.4% from last December. The modest price rise is deceiving, however, and reflects a substantial increase in the share of home sales priced $300,000 or below. For the year as whole, preliminary data show the median price of a new home was $392,900, which is up 16.6% from the prior year. The average price of a new home rose 15.8% to $457,300. The large gap between the two reflects the strength in home sales at the high end of the market, which has benefited from the strength in the stock market.
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